Porting mortgages

garvbuck

Hi,

Does anybody know which lenders are currently offering porting deals to their existing customers in negative equity? I have a mortgage with C&G, and read an article in The Times that said C&G/Lloyds can port mortgages so long as the buyer comes up with the deposit on the new property and does not want to extend the existing loan. But I can't find this on the C&G website.

I also saw that Nationwide are apparently offering up to 125% LTV to existing mortgage customers wanting to port their mortgages (again, I think the customer has to find the deposit for the new house).

Does anybody have a list of all those lenders offering such deals, and any information about whether the banks really give them out in practice/what difficulties people might encounter trying to get these deals, etc?

Thanks.

garvbuck

Why isn't anybody replying?! Have I posted on the wrong board?

garvbuck

I find it most peculiar that nobody is answering my post! Anyway, I thought I would let people know that I have spoken to C&G - both at head office and at my local branch - and it appears that they are not offering this deal at all. I think it must have been misreported in the press. To port my mortgage I need to have enough money in the bank to cover the negative equity and put a 10% deposit down on the new house. In my case that means around £20k to cover the negative equity and £20-25k for a new deposit. I have £0k in the bank, so I'm stuck!

Obviously Nationwide are offering to port negative equity for existing customers who have saved a 5% deposit. I suspect they might be the only lenders doing this, and that it is very difficult to get this deal even with them.

Perhaps it might open up in the future - I hope so. I have a spotless credit history despite having no savings, an existing mortgage at aroound 107% on which I have never missed a payment, and my husband and I have recession-proof jobs with good stable incomes. So in our case (as in many others) though of course LTV is very important (we have, after all, gone into negative equity), it is not a good indicator of how likely we are to keep paying the mortgage, and as we already have 107% it wouldn't make any difference to the bank to allow us to move. I suspect there are a lot of people in the same boat.

getmore4less

garvbuck wrote: »

I find it most peculiar that nobody is answering my post! .

probably because no one knows the answer!

getmore4less

garvbuck wrote: »

I find it most peculiar that nobody is answering my post! Anyway, I thought I would let people know that I have spoken to C&G - both at head office and at my local branch - and it appears that they are not offering this deal at all. I think it must have been misreported in the press. To port my mortgage I need to have enough money in the bank to cover the negative equity and put a 10% deposit down on the new house. In my case that means around £20k to cover the negative equity and £20-25k for a new deposit. I have £0k in the bank, so I'm stuck!

Obviously Nationwide are offering to port negative equity for existing customers who have saved a 5% deposit. I suspect they might be the only lenders doing this, and that it is very difficult to get this deal even with them.

Perhaps it might open up in the future - I hope so. I have a spotless credit history despite having no savings, an existing mortgage at aroound 107% on which I have never missed a payment, and my husband and I have recession-proof jobs with good stable incomes. So in our case (as in many others) though of course LTV is very important (we have, after all, gone into negative equity), it is not a good indicator of how likely we are to keep paying the mortgage, and as we already have 107% it wouldn't make any difference to the bank to allow us to move. I suspect there are a lot of people in the same boat.

It is lack of deposit not the negative equity that stops you moving for now.

When you get the deposit negitive equity is the next hurdle.

garvbuck

getmore4less wrote: »

It is lack of deposit not the negative equity that stops you moving for now.

When you get the deposit negitive equity is the next hurdle.

Thanks - you're right. Our mortgage payments are quite high so it's tricky for us to save any more, but we are trying to set aside £300 a month at the moment to save for a deposit. I'm looking into taking a second job, too, so hopefully we'll get there .

I guess I was thinking that, even if we get a deposit together in the next couple of years, if the market doesn't change it's unlikely we'll be able to move because we'll still have the negative equity, and C&G don't currently have a product that would allow us to port the debt.

Anyway, perhaps the market will change and we'll go back into positive equity, and perhaps in the next year or so more products will come onto the market. I guess, like most people, all we can do is save save save and keep our fingers crossed!

garvbuck

getmore4less wrote: »

probably because no one knows the answer!

Good point!